Gropes Off for Groupon: No New Adult Entertainment

Sex sells, but not at Groupon. The coupon giant says it is no longer accepting new adult entertainment merchants as customers.

"We continue to test different types of deals in markets around the country, and run categories that represent the interests of each local customer base," Groupon spokeswoman Julie Mossler said in an email Wednesday to CNBC. "While we aren't currently accepting new adult merchants, guidelines for what types of businesses we do and do not run are constantly re-evaluated on a local level."

The coupon giant didn't say why it changed its policy, but Morality in Media, an organization that opposes pornography, claims it pushed the company to say goodbye to X-rated merchants.